Results for tag: "Economic Order Quantity"

Economic Order Quantity (EOQ) is a supply chain management tool used to determine the optimal order quantity that minimizes the total cost of ordering and holding inventory. It is based on the idea that ordering and holding inventory both have costs associated with them. The EOQ model helps to identify the optimal order quantity that minimizes the sum of these costs. EOQ is used to determine the optimal order quantity for a given product, taking into account the cost of ordering and the cost of holding inventory. It is a useful tool for managing inventory levels and ensuring that the right amount of inventory is available when needed. EOQ is used by many companies in the supply chain management industry, including Amazon, Walmart, and Target. It is also used by many smaller companies, such as grocery stores and restaurants, to manage their inventory levels. EOQ is an important tool for managing inventory and ensuring that the right amount of inventory is available when needed. Show Less Read more